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Virgin Galactic Holdings, Inc.

Data period: Annual Quarterly Graham uses annual
NYSE · Industrials
Virgin Galactic Holdings, Inc.
SPCE · Aerospace & Defense
$3.56
▲ 0.07 (2.01%)
Cached · 10 min
Overall Grade
F
Defensive
F
Enterprising
Profitability
F⤢
Gross Profit Margin -12957.3%
Operating Margin -28895.2%
Net Income Margin -28508.8%
Fin. Health
D⤢
Years to Pay Off Debt -4.9 yrs
Working Capital vs Long-Term Debt -$202M
Working Capital $1M
Valuation
C⤢
Price-to-Book 1.77x
Cash Flow
F⤢
Free Cash Flow -$93M
Owner Earnings -$21M
Defensive — Graham's strict criteria (P/B, P/E, dividends, stability)  ·  Enterprising — Profitability & cash flow focused, accepts higher valuations for quality
About Virgin Galactic Holdings, Inc.
Virgin Galactic Holdings, Inc., an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. It engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies. Virgin Galactic Holdings, Inc. is headquartered in Tustin, California.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Market Cap $396M
Enterprise Value $437M
P/E (TTM) -7.38
Dividend Yield N/A
Exchange NYSE
Key Margins
Gross Profit -12,957.3%
Operating Margin -28,895.2%
Net Margin -28,508.8%
Company Info
Sector Industrials
Industry Aerospace & Defense
Employees 694
Country United States
Visit website
Showing Key Metrics
Income Highlights
Metric Q1 2026 Q4 2025
Gross Profit % -12,957.3%▼ -5,746.2%
Operating Margin % -28,895.2%▼ -19,483.0%
Net Income % -28,508.8%▼ -20,103.5%
Diluted EPS -0.81▲ -0.98
Balance Sheet Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Total Assets $750M $803M N/A
Total Debt $320M▼ $324M• N/A
Working Capital $1M▼ $164M• N/A
Years to Pay Debt -4.94 -5.17 N/A
Cash Flow Highlights
Metric Q1 2026 Q4 2025 Q4 2024
Free Cash Flow -$93M▲ -$95M• N/A
Owner Earnings -$21M -$17M N/A
CapEx % of Net Income N/A N/A N/A
📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.
Quarter vs Same Quarter Last Year
YoY strips seasonality
Revenue Growth (YoY)
Prior year: $0M ▼ $0M -50.8%
Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.
Gross Margin
Prior year: -4417.6% ▼ -12957.3% -8539.7pp
Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.
Operating Margin
Prior year: -14228.2% ▲ -28895.2% -14667.0pp
Graham: operating margin reflects true business economics before financing. Trend matters as much as level.
Net Margin
Prior year: -18326.9% ▲ -28508.8% -10181.9pp
Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.
Quarterly Health Checks
3 Graham/Buffett criteria that are valid and reliable on quarterly data
❌ Adequate Size
Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.
$0M/qtr (≈$1M ann.)
vs > $1.5B annualised revenue
❌ Financial Condition
Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.
1.00x current ratio
vs ≥ 2.0x
❌ Free Cash Flow
Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.
-$93M
vs Positive
Operating Cash Flow
-$54M
Latest quarter · Buffett's cash reality check
ROIC
-11.1%
Based on latest annual operating income
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Market Cap / Net Assets
1.8x
Net Assets: $224M
⚠️ Net margin compressed 10181.9pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.
Peers & Industry Comparison
Aerospace & Defense — Auto-detected peers
Company Price Market Cap P/E Gross Margin Net Margin Revenue
SPCE $3.56 $396M -7.38 -12,957.3% -28,508.8% $0M
BA
Boeing Company (The)		 $222.72 $175.6B 88.0 4.8% 2.5% $92.2B
LMT
Lockheed Martin Corporation		 $510.95 $117.8B 24.8 9.9% 6.4% $75.1B
RTX
RTX Corporation		 $185.60 $249.9B 34.9 20.2% 8.0% $90.4B
NOC
Northrop Grumman Corporation		 $521.50 $74.1B 16.3 20.5% 10.8% $42.4B
GD
General Dynamics Corporation		 $350.01 $94.7B 21.8 15.2% 8.1% $53.8B
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.49%
Low — management has little skin in the game
Return on Equity (ROE)
-28.9%
Weak — poor returns on equity
Return on Assets (ROA)
-8.6%
Poor — assets are not generating adequate returns
Debt Trend YoY
-1.4% YoY
Debt is declining — management is deleveraging
Leadership Team
Michael Colglazier
CEO, President & Director
Age 58
Pay: $7,222,828
Douglas Ahrens CPA
Executive VP, CFO & Treasurer
Age 58
Pay: $2,035,834
Richard Charles Nicholas Branson
Founder
Age 75
Eric Cerny
Vice President of Investor Relations
Aleanna Crane
Vice President of Communications
Top Institutional Holders
Institution % Owned Shares
Vanguard Capital Management LLC 2.89% 2,905,786
Blackrock Inc. 1.19% 1,197,136
Millennium Management Llc 0.92% 925,656
Geode Capital Management, LLC 0.88% 886,672
Susquehanna International Group, LLP 0.78% 785,848
UBS Group AG 0.69% 694,075
Morgan Stanley 0.65% 650,896
Point72 Asset Management, L.P. 0.51% 515,177
⚠️ Short interest exceeds 20% — heavy bearish bets
Risk Analysis
Short Interest
21.5% of float
Heavy short selling — market has significant bearish bets
Debt-to-Equity
1.43x
Moderate leverage
Current Ratio
1.00x
Adequate liquidity
52-Week Price Range
Low: $2.13 Current: $3.56 High: $8.90
Currently at 21% of 52-week range

Virgin Galactic Holdings, Inc. (SPCE) fundamental analysis — Overall grade F based on profitability, financial health, valuation and cash flow. Graham's Fair Value: N/A (negative EPS). Gross profit margin: -12,957.3%. Operating margin: -28,895.2%. Net margin: -28,508.8%. Market cap: $396M. Sector: Industrials. Industry: Aerospace & Defense. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett principles.

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